Amazon to buy headquarters buildings in $1B deal

Published 3:11 pm, Friday, October 5, 2012

The fourth phase of the new headquarters that Vulcan built for Amazon.com is seen at an unveiling in Seattle's South Lake Union neighborhood.

The fourth phase of the new headquarters that Vulcan built for Amazon.com is seen at an unveiling in Seattle's South Lake Union neighborhood.

Photo: Elliot Suhr, Seattlepi.com

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The fourth phase of the new headquarters that Vulcan built for Amazon.com is seen at an unveiling in Seattle's South Lake Union neighborhood.

The fourth phase of the new headquarters that Vulcan built for Amazon.com is seen at an unveiling in Seattle's South Lake Union neighborhood.

Photo: Elliot Suhr, Seattlepi.com

Image 3 of 8

The fourth phase of the new headquarters that Vulcan built for Amazon.com is seen at an unveiling in Seattle's South Lake Union neighborhood.

The fourth phase of the new headquarters that Vulcan built for Amazon.com is seen at an unveiling in Seattle's South Lake Union neighborhood.

Photo: Elliot Suhr, Seattlepi.com

Image 4 of 8

The fourth phase of the new headquarters that Vulcan built for Amazon.com is seen at an unveiling in Seattle's South Lake Union neighborhood.

The fourth phase of the new headquarters that Vulcan built for Amazon.com is seen at an unveiling in Seattle's South Lake Union neighborhood.

Photo: Elliot Suhr, Seattlepi.com

Image 5 of 8

The fourth phase of the new headquarters that Vulcan built for Amazon.com is seen at an unveiling in Seattle's South Lake Union neighborhood.

The fourth phase of the new headquarters that Vulcan built for Amazon.com is seen at an unveiling in Seattle's South Lake Union neighborhood.

Photo: Elliot Suhr, Seattlepi.com

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A sculpture in the center of the plaza at the new Amazon.com headquarters is seen at an unveiling of the fourth phase of the new headquarters that Vulcan built for Amazon in Seattle's South Lake Union neighborhood.

The fourth phase of the new headquarters that Vulcan built for Amazon.com is seen from inside of the Terry Avenue Building during an unveiling in Seattle's South Lake Union neighborhood.

The fourth phase of the new headquarters that Vulcan built for Amazon.com is seen from inside of the Terry Avenue Building during an unveiling in Seattle's South Lake Union neighborhood.

Photo: Elliot Suhr, Seattlepi.com

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Amazon to buy headquarters buildings in $1B deal

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Amazon will buy 11 buildings that South Lake Union developer Vulcan Real Estate built as part of the online retailer's Seattle headquarters, Vulcan announced Friday.

"We are truly excited that Amazon is making this long-term commitment to the South Lake Union community," Ada Healey, vice president of real estate for Vulcan Inc., said in a news release. "We know they will be excellent stewards of this property and will continue to play a vital role in revitalizing South Lake Union and creating a thriving urban neighborhood in the heart of Seattle's urban core."

Under the new deal, Amazon would pay Vulcan for $1.16 billion for the 11 buildings, which contain 1.8 million square feet in South Lake Union, with the deal expected to close in the fourth quarter. Amazon currently leases the buildings from Vulcan, which put them up for sale in August.

The 11 buildings are separate from Amazon's plan to build three office buildings, each up to 37 stories tall, with about 1 million square feet of space, on three full blocks along the east side of Westlake Avenue between Lenora and Virginia streets.

Vulcan said it plans to reinvest earnings from the sale into real estate, including the redevelopment of the remaining 30 acres it owns in the South Lake Union neighborhood.